Companies Seek Extensions for Overdue Annual General Meetings as Audits Conclude

Islamabad, In recent developments, companies have formally requested extensions from the Securities and Exchange Commission of Pakistan (SECP) for holding their overdue Annual General Meetings (AGMs) for the fiscal years 2022 and 2023, as stipulated under section 147 of the Companies Act, 2017.

One such request came from a company which had previously been granted permission to hold its overdue AGM for the year 2023 up until March 15, 2024, contingent on the completion of its audit by January 31, 2024. Despite the initial timeline, the audited accounts for 2023 have now been finalized, prompting the management to plan the AGM after a board meeting in April 2024. Consequently, the company is seeking an extension to hold its AGM up till April 15, 2024, affirming that the necessary fees have been deposited and an affidavit submitted.

Meanwhile, Chenab Limited has also reached out for approval to delay its AGMs for the years ended June 30, 2022, and June 30, 2023. The company had initially aimed to conduct these meetings by January 15, 2024, and March 15, 2024, respectively, following the expected completion of their audits. However, the SECP clarified that the direction under section 147 of the Act was unnecessary as the company proceeded with the planned AGMs, which must be held at the earliest in case of delays to comply with the compulsory requirements under the Act.

Furthermore, Chenab Limited has confirmed that the audit of its financial statements for the year ended June 30, 2023, is underway, with an expected completion date of January 31, 2024. Mian Muhammad Latif, Director of Chenab Limited, has provided an affidavit affirming the accuracy and truthfulness of the information regarding the overdue AGM for the fiscal year ending on June 30, 2023.

These requests for extensions and updates on the audit processes highlight the companies’ efforts to comply with regulatory requirements while navigating the challenges of concluding audits and scheduling AGMs within the stipulated timelines.